A type of strategic pricing based on analytical methods is used to: Multiple Choice   Utilize knowledge of the sales life cycle in setting price.   Employ improved design methods that reduce cost and improve price.   More accurately determine life cycle costs as a basis for setting price.   Optimally determine the best price.

Q: Whether the firm uses the​ market-based approach or the​ cost-based approach for pricing​ decisions,…

A: Introduction: Market based approach: For calculating the selling price of Asset firm uses market…

Q: In theory, the optimal method for establishing a transfer price is   incremental cost market price…

A: Solution: In theory, the optimal method for establishing a transfer price is "Market price" so that…

Q: When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: nother cost-based approach to pricing is called time and material pricing. Under this approach, two…

A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…

Q: “ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales…

A: No, any method that is used to assign costs to individual products that is applied to the problem of…

Q: A typical planning decision would be described as: Select one: O A. Monitoring actual sales…

A: Typically planning is Process of making a detailed proposal for doing or achieving something. In…

Q: Price accuracy and right product offering are important aspect of an efficient order-to-cash (OTC).…

A: Order to Cash (O2C) refers to a business process which involves the whole procedure of order…

Q: a difference in cost-plus pricing and target costing is that target costing starts with the price…

A: Target costing says that first target selling price is calculated, then markup is deducted from…

Q: Identify any two potential drawbacks that purchasing manager could face given their choice of…

A: The sourcing process encompasses all activities centered on identifying and evaluating possible…

Q: Which of the statement is not a true reflection of Target cost gap ?   The target cost gap =…

A: target costing is the way in which deriving of a target cost is done to set the production manager…

Q: Briefly explain the concept of economic, profitmaximizing pricing. It may be helpful to use graphs…

A: Pricing decisions: Pricing decisions is one of the most important and required decision for the…

Q: Can a company use a target pricing model without a follow-on cost-savings sharing agreement? Why or…

A: Target price is the price at which the stock future price is estimated grounded on earnings…

Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…

A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…

Q: Identify the relative advantages and disadvantages of basing transfer prices on total costs,…

A:

Q: 1. How valid and reliable do you think HIT investment decisions are currently? Why?

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: What tool can you use to incorporate probabilities into the What-If analysis? Sensitivity…

A: The objective of the question is to identify the tool that can be used to incorporate probabilities…

Q: Cost calculation

A: Cost is the amount incurred in production of product, carrying out a process, conduct of sales or…

Q: In target​ costing, prices determine costs rather than vice​ versa." Explain.       Question content…

A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…

Q: When standard costs are used in applying the cost-plus approach to product pricing, the standards…

A: False No, the standards should not be based upon normal levels of performance.

Q: Which costing system is helpful for internal managers when they're trying to make a short- term…

A: Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Q: Cost-volume-profit analysis is useful for   Question 8 options:   1)  helping managers to answer…

A: Cost volume profit relationship how these three elements costs, volume and profit are inter related…

Q: What is false about cost plus mark-up pricing? a. attempts to apply or allocate fix costs to pricing…

A: Cost plus pricing: It is a pricing strategy in which company set selling price by charging  markup…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: Which of the following is an advantage of using cost-based transfer prices? Multiple Choice Such…

A: Cost based transfer pricing is a costing method where the selling cost of the product is based on…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: Which of the following is a true statement? O The mark-up is designed to cover all non-product…

A: Answer: only a and c above The markup method is commonly used in pricing restaurant food menus and…

Q: lease identify what types of companies would use market-based pricing versus what type of companies…

A: Market-based pricing refers to the pricing strategy that is based on the market environment.…

Q: A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited…

A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Q: If Promus could make order amounts after realizing demand, what would the expected value of this…

A: The objective of this question is to calculate the expected value of information for Promus if it…

Q: It known that variable costing should be used for pricing purposes. What is the benefit of using…

A: There are mainly two types of Costing systems that are variable costing and absorption costing.…

Q: Explain one advantage and one disadvantage of the following transfer pricing methods: Cost Market…

A: first let us understand each of these methods briefly: Cost Method - Under this method goods are…

Q: Cost Behavior - Operating leverage and profitability analysis Discuss how understanding cost…

A: Understanding cost behaviour entails comprehending how an entity's costs and expenditures affect its…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: a) Compare and contrast variable cost-plus pricing and target pricing, and indicate the…

A: Variable costingThe variable costing method estimates the cost of the product by considering only…

Q: Kindly explain this limitation in pricing decisions in CVP analysis 1. Rationality 2. Multiple…

A: Cost-Volume-Profit (CVP) analysis, also known as Break-Even Analysis, is a method for businesses to…

Q: Can you provide samples/examples of tasks for developing the costing and profitability model for a…

A: Introduction The net present value (NPV) is the present value of outflows and inflows of cash over a…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.